By Nancy Dunkel
Iowa Student Loan Liquidity Corporation board member
News Release/Guest Column
For More Information Contact:
Tara Kamin
Corporate Communications Manager
Iowa Student Loan Liquidity Corporation
(515) 273-7404 | tkamin@StudentLoan.org
Generally, families pay for a college education with multiple sources. Common funding sources are your own savings and earnings, your student’s savings and earnings, scholarships and loans.
Make a resolution to reduce the amount of future student loans with these tips:
1. Estimate how much your student will need.
Your student’s choice of school and type of education will greatly influence the total cost. You can start by helping your student determine the right educational path for their potential career interests. Then, explore websites of in-state and out-of-state public and private colleges, community colleges or other training programs for current costs.
Check out the Resources for College Planning article for high school students at www.IowaStudentLoan.org/Plan for more information about online tools that can help you compare options and plan for expenses. Free online calculators are also available to help you compare estimated college expenses for the year your student will enter college.
2. Encourage savings by your own example.
Foster an environment of saving by looking for discounts, reducing expenses and comparison shopping for everyday purchases. Discuss with your student how you spend less now so you can save for retirement, education and large purchases.
3. Work with your student on reducing expenses.
If your student quickly spends a large part of their earnings, gifts and savings, help set savings goals, come up with less-expensive alternatives and bargain shop. Gently used items may be available for a fraction of the cost of new ones. Delaying the purchase of the newest models can also reduce costs.
4. Explore interest-bearing accounts.
Leverage savings by depositing into interest-bearing accounts. Spend some time researching different types of accounts and discussing their risks and advantages with your student. You might want to make an appointment for yourself and your student with a specialist at your financial institution or an independent financial adviser to fully explore your options.
5. Understand how to reduce college costs.
If you realize you and your student will not be able to save enough of the total cost of a planned education by high school graduation, think about how to reduce that cost. Your student may choose to live at home to attend a nearby school, attend a less-expensive school for some or all of the required classes, earn while learning with a skilled apprenticeship program, or work more before or during attendance.
The Resources for College Planning article for high school students at www.IowaStudentLoan.org/Plan is a good place to begin exploring available tools on how to reduce college expenses.
6. Monitor progress regularly.
Periodically check your and your student’s progress toward the financial goals you’ve set together. It’s also a good idea to investigate the expected costs now and then to better understand how estimated costs may change. You may consider matching what your student puts into savings or rewarding your student with additional money if they earn a large scholarship.
7. Look for opportunities to build your college savings.
Occasionally, you may be able to enter programs that award deposits into college savings accounts that will benefit your student. Check for scholarship and award opportunities from programs like ISave 529.
In addition, ISL Education Lending provides opportunities to win deposits periodically throughout the year. The ISL Education Lending Scholarship awards 45 $1,000 deposits twice a year, and you have a chance to earn quarterly awards by subscribing to the Student Planning Pointers for Parents e-newsletter. Learn more about the scholarship at www.IowaStudentLoan.org/Savings and the newsletter at www.SP3.org.
8. Plan for scholarships.
Many scholarships are available each year, and a good way to know what your student may earn in scholarships is to research ahead of time. If your student knows where they will continue their education, check out the school website for information about scholarships your student may qualify for. On college websites, a financial aid section can often be found under “Admissions.” Don’t forget to check for scholarships for specific majors.
Any student in high school can create a free account at websites like Step 1 Scholarship Search, which will help your student find scholarships that match specific criteria.
More Information
Visit www.IowaStudentLoan.org to access free college planning resources available from ISL Education Lending.
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